MEDICAL MARIJUANA IN ILLINOIS
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1 MEDICAL MARIJUANA IN ILLINOIS -LEGAL PERSPECTIVE Katie School/CPCU Spring Symposium April 22, 2016 Michael S. McGrory SmithAmundsen LLC
2 TERRIBLE, HORRIBLE, NO GOOD, VERY BAD JOKES Meetings at 4:20 Funny smell from the conference room Cheetos and Twinkies Branded rolling papers Weed Like to be Your Lawyers No joke 24 States & DC with med; 4 & DC with rec $7B in 2016; $22-35B by 2020
3 BACKGROUND Compassionate Use of Medical Cannabis Pilot Program Act Jan. 1, 2014 Illinois Legislative Findings Cannabis as medicine for 5,000 years Confirmed by modern medical research Other states have adopted successfully State not required to enforce federal law
4 FEDERAL LAW Schedule I Controlled Substance High potential for abuse No currently accepted medical use Lack of accepted safety for use But, feds acknowledge the trend IRS and banking guidance Nebraska/Oklahoma v. Colorado Budgetary games DEA considering rescheduling
5 COLE MEMO PRIORITIES Distribution to Minors Criminal Enterprises Interstate Transfer Pretext for Other Illegal Activity Violence/Firearms Drugged Driving Use of Public Land Possession on Federal Property
6 FEDERAL PROHIBITION ISSUES Interstate Commerce Intellectual Property Prescriptions Insurance Lawyers Taxes Employment Federal Funding and Contractors Banking
7 BANKING Bank Secrecy Act: suspicious activity Treasury Guidance How to bank MMJ and comply with BSA Cole Memo Due diligence Communicate with state Review application Understand the business Ongoing monitoring / SARs Red flag transactions
8 INSURANCE No explicit prohibition Lloyds backed out Green Earth Wellness Center v. Atain Specialty Ins. Co. (D. Col. 2016) Follow lead of banks?
9 THE ILLINOIS LAW Compassionate Use of Medical Cannabis Pilot Program Act 410 ILCS 130/1 et seq. Pilot Program expires Jan. 1, 2018 Highly regulated
10 REGULATORY THEMES What the System Looks Like Patient Access funds, experience Transparency complete disclosure Security record-keeping, alarms, cameras, delivery procedures, background Safety location, packaging, recall, lab testing, infusion, inspections Economic taxes, jobs
11 PHYSICIANS May Recommend if: Bona fide relationship beyond cannabis Full personal assessment within 90 days Assessment of records for 12 mos. Explains risks and benefits Record-keeping requirements VA Exception
12 May Not: PHYSICIANS, cont. Accept/offer remuneration to patient, dispensary, or cultivation center Examine a patient at a dispensary Serve on board or as employee Advertise Own an MMJ business, if certifying
13 DEBILITATING CONDITIONS Include: Cancer Glaucoma HIV AIDS Hepatitis C Crohn s Alzheimer's Muscular Dystrophy Rheumatoid Arthritis Spinal Cord Injury TBI MS Parkinson s Lupus Residual Limb Pain Severe Fibromyalgia Newly added conditions
14 PURCHASE & USE (1) Resident (2) Qualifying Medical Condition (3) Signed Certification (4) Background Check 2.5 ounces per 14 day period May be increased per DPH approval Caregivers permitted No use in schools, correctional facilities, motor vehicles, public places, near minors No law enforcement, firefighter, CDL, bus
15 DISPENSARIES 60 statewide Business and Operations Plan Security Plan Recordkeeping and Inventory Plan Suitability of Proposed Dispensary Financial Disclosures Bonus
16 CULTIVATION CENTERS 22 statewide Cultivation Plan Security Plan Suitability of Proposed Facility Product Safety & Labeling Plan Staffing and Operations Plan Business Plan Bonus (each)
17 WHAT THE FUTURE HOLDS Insurance Issues Property / Liability Coverage Product Liability Employment Health Insurance and Workers Compensation
18 WHAT THE FUTURE HOLDS, Cont. Federal Position Extension/Expansion/Expiration of Act New Conditions Justice System (Evidence, DUI, Violations) Banking???
19 Questions?
20 Michael S. McGrory SmithAmundsen, LLC 150 N. Michigan Ave. Suite 3300 Chicago, IL (312)
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